U.S. diesel prices have reached record highs, with reports citing peaks of $6.45 per gallon. These increases are attributed to a global shortage of refining capacity, rising Brent crude oil prices, and geopolitical conflicts, specifically a war with Iran and the Russia-Ukraine war. Contributing factors include attacks on Saudi Arabia's East-West pipeline, hostilities in the Strait of Hormuz and Bab el-Mandeb Strait, and Ukrainian drone strikes on Russian refineries. Vessel traffic through the Strait of Hormuz has decreased significantly since the conflict began in late February.
These costs are impacting multiple sectors. In agriculture, soybean farmer John Bartman reports that high diesel and fertilizer costs are threatening production. In logistics, trucking representative Lewiegh Pugh states that slim profit margins prevent carriers from absorbing costs, leading to price hikes for consumer goods. The U.S. Navy has also reported impacts on routine operations and training. Additionally, a mother in Florida has reported cutting essential therapies for her disabled child due to fuel expenses. Economic impacts include increased shipping and mailing surcharges from UPS, USPS, and Amazon, as well as higher prices for perishable groceries and home heating oil.
While social media posts have shown diesel shortages at gas stations in Texas and Florida, Patrick De Haan of GasBuddy states that industry data does not show a widespread national shortage.